For a newcomer dealing in real money can be risky in Forex. Many times they may lose substantial amounts of money because of wrong decisions. To prevent such contingencies, Metatrader is used by amateur investors to get a first-hand market experience. This is an electronic trading platform where brokers manage MetaTrader demo server and provide clients with demo accounts.
Who uses this real-time market simulator?
As discussed above, dealing with real money in exchange market can be a cumbersome process for inexperienced investors. So, they opt to practice trading in a no stakes environment before entering into real trading.
Financial brokers will give their new clients this software free of any fees; as a demo account. This report provides its users with real-time feedback on market operations and gives elaborate trade analysis.
Benefits of using MetaTrader demo server;
Foreign Exchange market is a highly competitive and liquid ecosystem. Hundreds of billions of dollars are traded every day. So, using a virtual server gives a trader the following benefits:
- Live market Information
Creating a demo account with commercial brokers offers clients access to a continuous live streaming of market movement.
- Provision of virtual cash
Opting for a demo server provides customers with virtual capital that can be invested to simulate real life trading. This helps amateurs to see the results of their decisions and rectify their mistakes immediately; without losing any money.
- Space to test new ideas
Traders find it extremely logical to utilize MetaTrader demo server as it provides an opportunity to test new trading strategies.
Example: - Let's say, Oliver is an investor trading in USD/EUR which is currently running at 1.2000. He is a day trader. Market fluctuations forecast that USD/EUR will escalate to 1.2009. Therefore, by using Metatrader, he sets his stop loss at 1.2007. Now, if market predictions turn out to be correct, he will gain seven pips.
So, you can see that demo server are highly effective in chalking out trading strategies.
- No language barrier
Being widely used software, market information is available to traders in their regional language. This provides an easier user interface.
- Low usage of PC data
Metatrader Demo server as a trading platform uses petite resources of your computer. This enables faster execution of trading decisions and strategies.
Setup for portable devices:
In addition to desktop versions, MetaTrader demo server is also available through mobile platforms such as Android and IOS. For Android users, a trader has to use play store while for an Apple user it can download by using his iTunes account. This provides portability to users as one can access his trading account at any time and from any place.
Moreover, for a person who is involved in a full day work schedule, such an app will notify him about significant news events that can influence major market movements.
Summarizing, one can say MetaTrader demo server software has utilities in a wide range of market situations. Amateur investors use it to sharpen their investing skills while seasoned traders utilize its flexibility to experiment with new ideas.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.